Nate Moghadam  ·  NMLS #906770  ·  Fairway Independent Mortgage

FHA Loans
Low Down Payment. First-Time Friendly.

FHA loans are one of the most popular mortgage programs for first-time buyers. With a down payment as low as 3.5% and flexible credit requirements, they open the door to homeownership for more people.

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Available in 14 States
10+ Years Experience
5-Star Rated
FHA Loans

What Is an FHA Loan?

An FHA loan is a mortgage insured by the Federal Housing Administration. Because the government backs these loans, lenders can offer them to borrowers with lower credit scores and smaller down payments than conventional loans typically require.

FHA loans are particularly popular with first-time homebuyers who haven't had time to build up large savings or establish a long credit history. They're available for single-family homes, multi-unit properties (up to 4 units), condos, and manufactured homes that meet FHA standards.

The main tradeoff is mortgage insurance premium (MIP) — both upfront and annually. But for many buyers, the lower barrier to entry is well worth it. And once you've built equity, you can often refinance into a conventional loan to remove MIP.

3.5%Min Down Payment
580+Min Credit Score
14States Available
30 yrMax Term

Interested in an FHA Loan?

Talk to Nate for free — he'll tell you in minutes if you qualify and what your payment would look like.

Book a Free Call Start Pre-Approval
(617) 945-3632 nate@nateloans.com

Nate Moghadam · NMLS #906770
Fairway Independent Mortgage Corp · NMLS #2289
Equal Housing Lender

The Details

FHA Loan Requirements & Benefits

Basic Requirements

  • Credit score: 580+ for 3.5% down; 500–579 for 10% down
  • Down payment: As low as 3.5% of the purchase price
  • Debt-to-income ratio: Typically 43–50% max DTI
  • Employment history: 2-year employment history preferred
  • Property type: Primary residence only; up to 4 units
  • Mortgage insurance: Upfront MIP (1.75%) + annual MIP required

Why Choose an FHA Loan?

  • Lower down payment: Get into a home with as little as 3.5% down
  • Flexible credit: Qualifying is possible with scores conventional loans may reject
  • Gift funds allowed: Entire down payment can come from family gifts
  • Seller concessions: Sellers can contribute up to 6% toward closing costs
  • Streamline Refinance: Easier future refinancing with FHA's Streamline program
  • Competitive rates: Often lower than conventional due to government backing

Who Is an FHA Loan Best For?

  • First-time homebuyers with limited savings
  • Buyers with credit scores in the 580–680 range
  • Buyers who want to use gift funds for the down payment
  • Those who need more flexible debt-to-income requirements
  • Buyers purchasing a primary residence (not an investment property)
  • House hackers buying a 2–4 unit property and living in one unit

How Nate Helps

  • Reviews your full financial picture to confirm you qualify
  • Compares FHA vs. Conventional side-by-side so you see the real difference
  • Issues a strong pre-approval letter fast — often within 1 business day
  • Guides you from application through closing day, step by step
  • Direct access — call or text Nate, no call centers
FHA Loan Coverage

Available in All 14 of Nate's States

CACalifornia
COColorado
FLFlorida
MEMaine
MDMaryland
MAMassachusetts
NHNew Hampshire
NJNew Jersey
NCNorth Carolina
PAPennsylvania
RIRhode Island
TNTennessee
TXTexas
VAVirginia
Common Questions

FHA Loan FAQs

Everything you want to know about FHA loans — answered by Nate.

The minimum down payment is 3.5% if your credit score is 580 or higher. With a score between 500–579, you'll need at least 10% down. On a $400,000 home, 3.5% down is $14,000 — significantly less than the 20% many people assume is required.
The FHA minimum is 580 for 3.5% down, or 500–579 with 10% down. Individual lenders may set their own minimums slightly higher. If your score needs work, Nate can walk you through a plan to improve it before applying.
FHA loans require two types of MIP: an upfront MIP of 1.75% (rolled into the loan) and an annual MIP of 0.55–1.05% paid monthly. If you put less than 10% down, MIP stays for the life of the loan. With 10%+ down, it falls off after 11 years. Many buyers refinance into a conventional loan once they reach 20% equity to remove MIP entirely.
It depends on your credit and down payment. FHA is often better if your credit score is under 680 or your down payment is small. Conventional is often better if your credit is 720+ and you can put 20% down (no PMI at all). Nate runs both scenarios side-by-side so you can see the real difference in monthly payment and total cost — book a free call to find out which fits your situation.
Yes — FHA loans can be used to buy properties with up to 4 units (duplex, triplex, fourplex) as long as you live in one unit as your primary residence. This is a popular "house hacking" strategy where rental income from the other units helps offset your mortgage payment.
The fastest way is to start your application online — it takes about 10 minutes. Or book a free 15-minute call with Nate to talk through your situation first. No pressure, no obligation.

Ready to explore an FHA Loan?

Talk to Nate directly — no forms, no call centers, no runaround.

Book a Free Call Get Pre-Approved